Merryn Talks Money UK Budget Special: What Will It Cost You?
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Nov 27, 2025 Stephanie Flanders, Head of Economics at Bloomberg, Helen Thomas, CEO of Blonde Money, and John Stepek, author of Money Distilled, share insights on the latest UK budget. They debate whether it helps secure the Chancellor's position amidst market calm. The panel discusses inflation impacts, missed opportunities for meaningful reform, and concerns about rising household costs. They also tackle housing policies, welfare spending, and the risks of wealthy emigration due to tax changes, ultimately highlighting the budget's limited effectiveness in driving long-term growth.
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Market Calm Masks Fiscal Risk
- Markets gave Rachel Reeves a short-term benefit of the doubt due to calmer global rates and the Fed outlook.
- But the budget backloaded consolidation and higher borrowing leaves significant political and market risk.
Wage Hits Can Be Inflationary
- Some measures like minimum wage increases are inflationary because employers pass higher labour costs into prices.
- Those choices can complicate the Bank of England's path to cutting interest rates.
Missed Opportunity For Credible Consolidation
- The budget missed a chance to front-load tough fiscal fixes despite having a large majority and term to act.
- That repeated short-term compromise undermines credibility and future market trust.